The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has warned that renewed tensions in the Middle East and rising global oil prices could pose fresh inflation risks for Ghana, as the Monetary Policy Committee begins deliberations on the country's monetary policy stance.

Speaking at the opening of the 131st MPC meeting, Dr. Asiama said global economic developments have broadly evolved as expected since the last meeting, but downside risks have become more pronounced.

According to him, while a ceasefire in mid-June temporarily eased tensions and reduced oil prices, renewed hostilities around the Strait of Hormuz have reignited volatility in energy markets, with Brent crude climbing above 85 dollars per barrel earlier this week.

"The persistence of elevated energy prices has slowed the anticipated pace of global disinflation and prompted several central banks to reassess the timing of further easing."

Dr. Asiama said the developments are particularly significant for Ghana because the country exports commodities but relies on imports for its energy needs.

"For Ghana, as a commodity exporting yet energy importing economy, these developments reinforce the need to assess carefully the extent to which external cost pressures may influence the domestic inflation outlook over the policy horizon."

He said the MPC would also assess how continued volatility in global oil markets could affect Ghana's balance of payments, foreign reserves and exchange rate.

"The committee must consider what renewed volatility in global oil markets implies for the balance of payments, for reserve accumulation and for the exchange rate," he said.

The Governor noted that Ghana's external buffers remain a source of resilience, adding that prudent reserve management and exchange rate flexibility will continue to support macroeconomic stability.

"Ghana's external buffers remain a source of resilience and disciplined reserve management alongside continued exchange rate flexibility."